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Re:German draft proposal would subsidize smaller firms to en... by systemvoltage on Wednesday February 03, 2021 @04:34PM (#26019450)
US/EU sold out to cheaper prices in China partly due to currency manipulation and partly due to the fault of their own (meaning capitalistic incentives, no regulations, international trade agreements, etc.).

Further they did so with the presumption that China will shed off its authoritarian tones as it grows. That didn't pan out as well.

I would say your assessment of this situation is pretty spot on - we need to ask Why and what led to centralization of manufacturing specifically.

Re:German draft proposal would subsidize smaller firms to en... by mywittyname on Wednesday February 03, 2021 @04:54PM (#26019673)
Hit tech industries are limited by the number of educated people in the population available to support them, so they operate at the whims of citizens and the education system.

If countries want to expand their silicon design and manufacturing capabilities, then they need to somehow get their citizens to study the relevant fields necessary to grow such industries.

American university graduates tend towards degrees related to business or healthcare. I'm not sure how countries like China, Korea, and Japan manage to graduate so many technical people.

Part of the issue is chicken-and-egg. It's hard to get a job in the field of chip design / manufacturing because there just aren't that many of those jobs available in the USA, outside of a few key regions.